DUBLIN--(BUSINESS WIRE)--The "Global Microgrid Market Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global microgrid market is estimated to grow from USD 24.6 billion in 2021 to USD 42.3 billion by 2026 at a CAGR of 11.4% during 2021-2026.
The growth of the microgrid market is driven by factors such as rising focus on decarbonization by various end users and government, increasing demand for uninterrupted power supply, growing adoption of microgrids for rural electrification, and rising instances of cyberattacks on energy infrastructures. Initiatives by governments of different countries to encourage the development of microgrids are also fueling the growth of the market.
Grid connected segment to register higher CAGR during the forecast period
The grid connected segment of the microgrid market is projected to register the highest CAGR during the forecast period, by connectivity. They offer a number of benefits, such as grid resiliency, improved power quality, and low impact on the environment, thereby leading to increased demand. The growth of this segment can be attributed to the expansion of utility-based grid networks globally, coupled with the large-scale harnessing of renewable sources of energy, including offshore winds.
Hardware segment is estimated to hold the largest share of the market during the forecast period
The hardware segment of the microgrid market is estimated to register the largest market share in 2026, by offering. The hardware of microgrids comprises power generators, energy storage & distribution systems, and controllers. The key drivers for the growth of the microgrid market for the hardware segment include the growing number of microgrid projects worldwide, decreasing costs of energy storage and renewable sources of energy, and increasing government initiatives to promote the use of clean energy and minimize greenhouse gas (GHG) emissions.
Controllers for microgrid hardware segment to register higher CAGR during the forecast period
The controllers segment of the microgrid hardware market is projected to register the highest CAGR during the forecast period, by hardware type. Smart meters are expected to witness increased demand globally due to the growing requirement for record maintenance by utility companies for monitoring and billing purposes. Smart meters enable remote data collection for billing and offer improved power quality (PQ).
Remote segment is estimated to hold the largest share of the market during the forecast period
The remote segment of the microgrid market is estimated to register the largest market share in 2026, by end use. Key factors driving the demand for microgrids for rural electrification are the growing government support and surge in the deployment of microgrid projects in remote areas.
Governments of different countries are increasingly investing in the development of electricity infrastructures to provide low-cost and clean electricity. This results in increased demand for microgrids in remote areas to generate power, as well as to manage and control distributed energy resources.
APAC is projected to become the fastest geographical market between 2021 and 2026
APAC is expected to witness the highest CAGR in the microgrid market during the forecast period. The growth of the market in APAC can be attributed to the high rate of rural electrification in several economies such as India, Malaysia, and the Philippines.
The large number of unelectrified islands in Indonesia and the Philippines, and the lack of proper electricity infrastructure in emerging economies led to the demand for cost-effective microgrids in the region. This is expected to contribute to the growth of the microgrid market in APAC during the forecast period.
Major players profiled in this report:
The microgrid market is dominated by a few established players such as ABB (Switzerland), General Electric Company (US), Siemens (Germany), Eaton Corporation (Ireland), and Schneider Electric (France).
Market Dynamics
Drivers
- Rising Focus on Decarbonization by Various End-users and Governments
- Increasing Demand for Uninterrupted and Reliable Power Supply
- Growing Adoption of Microgrids for Rural Electrification
- Rising Instances of Cyberattacks on Energy Infrastructures
Restraints
- Huge Installation and Maintenance Costs of Microgrids
Opportunities
- Growing Number of Microgrid Projects for Different Verticals
- Increasing Energy Demand and Need for Expansion of Renewable Energy in APAC
- Rising Investor Interest in Eaas Business Model to Minimize Costs
- Government Support to Encourage Development of Microgrids
Challenges
- Lack of Standard and Regulatory Frameworks Related to Microgrid Operations
- Technical Challenges of Island Mode Microgrids
Industry Trends
Trends/Disruptions Impacting Customer's Business
- Emerging Areas and Revenue Pockets for Microgrid Market
Key Technology Trends
- Blockchain Based Microgrids/ Blockchain Microgrid
- Smart Microgrids
- Advent of Ai Based Microgrids
Case Studies: Microgrid Market
- GE: University of Ontario Institute of Technology (Canada)
- GE: Navy Shipyard Project in Philadelphia (US)
- Homer Energy: Ace Natural, New York (US)
- S&C Electric: Half Moon Ventures, Minster, Ohio (US)
- S&C Electric: Ergon Energy, Queensland (Australia)
Tariff and Regulatory Landscape
- Carbon-Reduction Policy Trends in Energy
- Climate Solutions Act
- Tarriff and Regulations in Precision Farming and Smart Greenhouses
Companies Mentioned
- Abb (Hitachi Abb Power Grids)
- Advanced Microgrid Solutions (Ams)
- Anbaric Transmission
- Canopy Power
- Dajie
- Eaton Corporation
- Exelon Corporation
- Ferroamp
- General Electric (Ge)
- General Microgrids
- Go Electric
- Gram Power
- Green Energy Corp
- Homer Energy
- Honeywell
- Pareto Energy
- Power Analytics
- Powerhive
- Powersecure, Inc, a Subsidiary of Southern Company
- S&C Electric
- Schneider Electric
- Siemens
- Spirae
- Tesla
- Viridity Energy by Ormat Technologie
For more information about this report visit https://www.researchandmarkets.com/r/e23064
